Ashok Gehlot raised the issue of collateral faced by loan seekers.
Rajasthan Chief Minister Ashok Gehlot wrote to the Center to request support for easy funding of PM-KUSUM projects in the state. In a letter dated July 26 to Minister of Energy and New and Renewable Energies RK Singh, the CM raised the issue of the challenges KUSUM applicants face in obtaining loans from banking institutions.
“I want to draw your attention to the challenges that the PM KUSUM Component-A program is facing in the state. For its first phase, applicants wishing to set up a solar power plant have been selected… A, progress is slow compared to the target due to the non-availability of loans to farmers by banks ”, said CM Gehlot in his letter.
Gehlot raised the issue of collateral encountered by loan seekers. He said that if the banks agree to accept the project, the project land and the project income as collateral, it will solve the problems faced by the farmers.
“The success of this program launched by the Prime Minister for the welfare of farmers is not possible without the participation of banks and financial institutions,” Gehlot said.
The Chief Minister of Rajasthan has asked the Minister of Renewable Energy (GoI) to raise the issue with the Ministry of Commerce and ensure the availability of easy finance for candidate farmers.
Rajasthan is among the first to adopt the KUSUM project and has already selected over 600 applicants under the program.
According to official data, 95 percent of applicants are farmers and many of them need financing to meet the initial investment.
In particular, the solar energy production capacity of one megawatt requires an investment of almost Rs 4 crore.
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